Concept explainers
(a)
To calculate: The aggressive growth if Justin Jones has an amount of
(b)
To calculate: The growth if Justin Jones has an amount of
(c)
To calculate: The growth & income if Justin Jones has an amount of
(d)
To calculate: The income if Justin Jones has an amount of
(e)
To calculate: The cash if Justin Jones has an amount of
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Check out a sample textbook solutionChapter 13 Solutions
Mathematical Ideas (13th Edition) - Standalone book
- Consider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 2.93 2.46 1.49 2.91 0.17 0.21 2.67 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 2.73 1.22 1.52 1.9 0.32 1.54 1.44 sum of squares for treatments≈ 0.6898 sum of squares for error 22.3436 Step 1 of 2: What are the degrees of freedom for the sum of squares for error? Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 2.73 1.23 1.42 0.58 0.37 1.64arrow_forwardConsider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 2.93 2.46 1.49 2.91 0.17 0.21 2.67 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 2.73 1.22 1.52 1.9 0.32 1.54 1.44 sum of squares for treatments≈ 0.6898 sum of squares for error 22.3436 Step 2 of 2: Find the mean square for error. Round your answer to two decimal places, if necessary. Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 2.73 1.23 1.42 0.58 0.37…arrow_forwardYou do not need a lot of money to invest in a mutual fund. However, if you decide to put some money into an investment, you are usually advised to leave it in for (at least) several years. Why? Because good years tend to cancel out bad years, giving you a better overall return with less risk. To see what we mean, let's use a 3-year moving average on the Calvert Social Balanced Fund (a socially responsible fund). Year 1 2 3 4 5 6 7 8 9 10 11 % Return 1.78 17.79 7.46 5.95 −4.74 25.85 9.03 18.92 17.49 6.80 −2.38 (a) Use a calculator with mean and standard deviation keys to find the mean and standard deviation of the annual return for all 11 years. (Round your answers to two decimal places.) x = % s = % (b) To compute a 3-year moving average for 1992, we take the data values for year 3 and the prior 2 years and average them. To compute a 3-year moving average for year 4, we take the data values for year 4 and the prior 2 years and average them. Verify that the…arrow_forward
- Consider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Small Cap Fund Explorer Value Small-Cap Value Index Admiral Small-Cap Index Admiral Shares Strategic Small-Cap Equity Explorer Small-Cap Growth Index Admiral Explorer Value Small-Cap ETF Yield (%) 1.36 2.46 1.49 1.18 0.17 0.21 2.85 1.44 Fund Yield by Asset Class Mid Cap Fund Capital Value Mid-Cap Value Index Admiral Extended Market Index Admiral Shares Mid-Cap Index Admiral Shares Mid-Cap Growth Capital Value Strategic Equity Capital Opportunity Admiral Shares Yield (%) 0.96 1.15 1.22 1.52 0.93 0.32 1.54 1.64 sum of squares for treatments≈ 1.4369 sum of squares for error 17.8020 Step 1 of 2: What are the degrees of freedom associated with the sum of squares for treatments? Large Cap Fund Equity Income High Dividend Yield Index 500 Index Admiral Shares Diversified Equity FTSE Social Index Growth Equity U.S. Growth Windsor Yield (%) 3.24 3.50 1.15 1.23 1.42 0.24 0.37…arrow_forwardWhy do the results imply that long term investing is less risky than short term investingarrow_forward] Consider the following table containing yields for mutual funds in different asset classes (small, mid, and large cap). Fund Yield by Asset Class Small Cap Mid Cap Large Cap Fund Yield (%) Fund Yield (%) Fund Yield (%) Explorer Value 1.22 Capital Value 0.96 Equity Income 3.24 Small-Cap Value Index Admiral 2.46 Mid-Cap Value Index Admiral 0.52 High Dividend Yield Index 3.50 Small-Cap Index Admiral Shares 1.49 Extended Market Index Admiral Shares 1.22 500 Index Admiral Shares 0.52 Strategic Small-Cap Equity 2.61 Mid-Cap Index Admiral Shares 1.52 Diversified Equity 1.23 Explorer 0.17 Mid-Cap Growth 0.82 FTSE Social Index 1.42 Small-Cap Growth Index Admiral 0.21 Capital Value 0.32 Growth Equity 1.42 Explorer Value 1.32 Strategic Equity 1.54 U.S. Growth 0.37 Small-Cap ETF 1.44 Capital Opportunity Admiral Shares 1.27 Windsor 1.64 sum of squares for treatmentssum of squares for error≈1.7894≈15.7229 Step 1 of 2 : What are the degrees of freedom…arrow_forward
- More than 50,000 state and local governments and their agencies borrow money by issuing municipal bonds to build, repair, or improve schools, streets, highways, hospitals, sewer systems, and so on. When the federal income tax law was adopted in 1913, interest on municipal bonds was excluded from federal taxation. As a result, municipal bond investors are willing to accept lower yields than those they can obtain from taxable bonds. As part of your portfolio, you are considering investing $80,000 in bonds. You have the choice of investing in tax-exempt municipal bonds yielding 2.75% or corporate bonds yielding 4% in taxable interest income. (a) What is the annual interest income (in $) and tax status of the municipal bond investment? $ (b) What is the annual interest income (in $) and tax status of the corporate bond investment? $ (c) If you are in the 30% marginal tax bracket for federal income taxes and your state and local taxes on that income amount to an…arrow_forwardDay traders typically buy and sell stocks (or other investment instruments) during the trading day and sell all investments by the end of the day. The following table shows the closing prices on September 22, 2015, of 12 stocks selected by your broker, Prudence Swift, as well as the change that day. Tech Stocks Close Change AAPL (Apple) $113.40 -1.81 ADBE (Adobe Systems) $84.66 1.34 EBAY (eBay) $25.61 -0.31 MSFT (Microsoft) $3.90 -0.21 S (Sprint) $4.40 0.02 WIFI (Boingo Wireless) $8.51 0.56 Non-Tech Stocks ANF (Abercrombie & Fitch) $21.81 -0.02 в (Воeing) $133.99 -2.03 F (Ford Motor Co.) $13.91 -0.40 GE (General Electric) $25.10 0.01 GIS (General Mills) $57.12 0.33 JNJ (Johnson & Johnson) $93.26 0.13 On the morning of September 22, 2015, Swift advised you to purchase a collection of three tech stocks and two non-tech stocks, all chosen at random from those listed in the table. You were to sell all the stocks at the end of the trading day. (a) How many possible collections are possible?…arrow_forwardMore than 50,000 state and local governments and their agencies borrow money by issuing municipal bonds to build, repair, or improve schools, streets, highways, hospitals, sewer systems, and so on. When the federal income tax law was adopted in 1913, interest on municipal bonds was excluded from federal taxation. As a result, municipal bond investors are willing to accept lower yields than those they can obtain from taxable bonds. As part of your portfolio, you are considering investing $70,000 in bonds. You have the choice of investing in tax-exempt municipal bonds yielding 2.75% or corporate bonds yielding 4% in taxable interest income. (a)What is the annual interest income (in $) and tax status of the municipal bond investment? (b)What is the annual interest income (in $) and tax status of the corporate bond investment? (c) If you are in the 32% marginal tax bracket for federal income taxes and your state and local taxes on that income amount to an additional…arrow_forward
- hgggtarrow_forwardCan someone please explain it to me ASAP??!!arrow_forwardAlthough investing all at once works best when stock prices are rising, dollar-cost averaging can be a good way to take advantage of a fluctuating market. Dollar-cost averaging is an investment strategy designed to reduce volatility in which securities are purchased in fixed dollar amounts at regular intervals regardless of what direction the market is moving. This strategy is also called the constant dollar plan. You are considering a hypothetical $1,200 investment in a media company's stock. Your choice is to invest the money all at once or dollar-cost average at the rate of $100 per month for one year. Assume that the company allows you to purchase "fractional" shares of its stock. (a) If you invested all of the money in January and bought the shares for $12 each, how many shares could you buy? shares (b) From the following chart of share prices, calculate the number of shares that would be purchased each month using dollar-cost averaging and the total shares for the year. Round to…arrow_forward
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